Application of Magellan Asset Management Limited as responsible entity of the Magellan Global Fund

The case involved an application by Magellan Asset Management Limited, acting as the responsible entity for the Magellan Global Fund, seeking judicial advice under section 63 of the Trustee Act 1925 (NSW). The application was focused on the proposed conversion of closed class units to open class units within the fund. The court was required to determine whether the responsible entity would be justified in convening meetings and distributing an explanatory memorandum to unitholders, and if the responsible entity would be justified in treating the constitution amendments as within its power.

The central legal issue was whether the proposed conversion of closed class units to open class units was within the power of the responsible entity and whether it would be justified for the responsible entity to convene meetings and distribute the memorandum to unitholders. The court had to consider the implications of the constitution and any relevant statutes and case law to ascertain the correctness of the proposed actions.

The court found that the responsible entity would be justified in convening meetings and distributing the explanatory memorandum to unitholders, as the proposed conversion was within the power of the responsible entity. The court considered the constitution, relevant statutes, and the context of the proposed changes, concluding that the responsible entity acted appropriately and within its power. Consequently, the court advised that the responsible entity would be justified in treating the constitution amendments as within its power.

The court's final orders confirmed that the responsible entity would be justified in convening meetings and distributing the explanatory memorandum to unitholders, and that the proposed conversion of closed class units to open class units was within the power of the responsible entity.